The CFA Institute Research Foundation has put out the “Valuation Handbook—International Guide to Cost of Capital 2022 Summary Edition” from Kroll. This 179-page work provides interpretive analyses and insights through June 30, 2022, and is an abridged version of the research and data that are available through the Kroll Cost of Capital Navigator. The publication examines the important difference in risk characteristics of investing in various countries and has the following seven chapters:
- “International Cost of Capital Overview”;
- “Strengths and Weaknesses of Commonly Used Models”;
- “International Equity Risk Premia”;
- “Country Yield Spread Model”;
- “Relative Volatility Model”;
- “Erb-Harvey-Viskanta Country Credit Rating Mode”; and
- “Firm Size and the Cost of Equity Capital in Europe.”
The publication is free of charge, and you can download it if you click here.
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